Finance Minister Muhammad Aurangzeb emphasized the need to mobilize climate finance to address Pakistan’s mounting environmental and economic challenges, calling climate change and population growth existential threats. Speaking at an SDPI plenary in Islamabad, he highlighted ongoing efforts to align Pakistan’s fiscal and regulatory systems with global sustainability goals, including new initiatives such as the Virtual Asset Regulatory Authority (VARA) and the Pakistan Crypto Council to promote digital finance for green investment.
Aurangzeb revealed that Pakistan has secured significant international climate funding, including a $1.3 billion IMF climate finance agreement, $500 million from the ADB, and an annual $2 billion from the World Bank’s ten-year Country Partnership Framework. He also announced plans to issue Panda Bonds in China’s capital market.
Other speakers, including Zafar Masud and officials from UNEP and SDPI, stressed the need for blended finance — combining public and private capital — to tackle climate challenges collectively across South Asia. They proposed creating a Regional Climate Bank, developing a clear taxonomy for green finance, and integrating climate policy into national frameworks.
